Saudi Oil is quite a subject in todays economy. What people don't realize is that Saudi Oil goes to other places than the US, such as China. At least, I had never considered this. Foreign oil in the US is something that always grabs peoples attention, because everyday citizens are paying the price for what the US is deciding to import. Many people believe that drilling domestic oil is a much better option than importing foreign oil. That said, people may get their wish. Saudi dependency from the US is forcasted to go down in the upcoming drilling season, as dependency on Canadian Oil reserves and drilling in the Dakotas and in Texas goes up. However, it is believed that the oil pipelines cannot sustain the demand that the US economy needs, therefore there will always be a substantial demand for foreign oil. The problem however, is tension in the middle east. With the concerns of Irans nuclear program, the US has been trying to restrict the sanctions for Irans ability to sell crude, which is the lifeline of Irans economy. However, the backlash of this may be a blocakage of the Strait of Hormuz, which could be a disastrous political conflict. The Obama administration seems to not be overly concerned with this problem however, believing that we can survive on our backup domestic reserves. The Saudi Government needs to sell the oil one way or the other, and less dependency from the US would mean that they would focus their sales elsewhere, such as China, despite Chinas economic struggle right now.
“There are going to be tensions in the Middle East whether that oil is going to the United States or going to somewhere else,” said Adam Sieminski, administrator of the Energy Department’s Energy Information Administration. “And if oil prices go up because of a problem in the Middle East, that causes a problem for the world in general and not one that is specific to the United States.”
Since the 2010 BP Oil spill, the Gulf of Mexico has yet to hit the projected number that they were expected to in Oil Barrels per day. The US import of barrells of foreign oil however has been decreasing, as we try to focus our drilling on domestic soil, and from our neighbors in Canada. The presidential election will also have a effect on the price of oil, depending on Obama's adjustments to the Oil economy and Mitt Romneys new plans.
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